Montgomery, AL – Alabama's second largest insurer of homes, Alfa Insurance, says it plans not to renew policies on one out of every six homes it insures in Alabama.
The company announced Friday that it won't renew policies on about 73,000 homes when they come up for renewal over the next 16 months.
Alfa's general counsel, Al Scott, said most of the policies are with landlords who own multiple rental houses. Some are on individual homes where the owners don't have any other insurance with Alfa.
Scott says the company has been reviewing its procedures because of an increase in the frequency and severity of storms in the last 10 years. He says the company expects about 25,000 claims from the April tornadoes totaling at least $425 million.
(Copyright 2011 by The Associated Press. All Rights Reserved.)